tv After the Bell FOX Business September 1, 2015 4:00pm-5:01pm EDT
ago. a notoriously negative month for august, worst month in several years. dow down 500 points at its low. we have today's winners and losers. david: not just stocks. [closing bell ringing] oil reversing course after-hours. it is down 8.8%. gold, if you have a little gold, there is a little bright spot. gerri: a little bright spot. how do you keep investments in your 401(k) safe on day like today? david: good question. gerri: we have panel to give you market plunge protection. david: meanwhile a major selloff. gaining momentum in the final hour of trading as the closing bells sound on wall street. let's look where we're ending the day. gerri: take a look at these numbers. the dow down 468 points. s&p down 58. almost 3%. has down 138 points. >> oh. gerri: oil as you said down too after that major run. gold, only bright spot, trading
higher. all red that i can see. david: if you're looking for some silver lining maybe that is not quite it but that's all we've got. oil reversing a three-day rally and gold gaining. larry shover is in the pitts of the cme in chicago. adam shapiro is watching today's biggest stock market moves. but first, let's head straight to the floor of the new york stock exchange for more on the wild swings at the close. lori rothman, take it away. >> hi, twice. the dow closes down 468 points. that is not even the worst level of the day. it was dicey last hour with the dow down more than 500 points putting the industrial average below the 16,000 mark. did recoup some but not a whole lot. one of the worst trading days of the year but not the worst if you're a bull. s&p 500, no surprise all 10 sectors were down. energy the worst. crude oil falling.
i know you get into that this hour. technology also a weak spot. nasdaq negative for the year with the nasdaq composite, where is it up there on the big board -- let me talk about the russell because the russell also closed down 2.7%. a lot of folks were holding out hope that the russell comprised of small cap companies that don't have as much exposure to china would do okay, that fell right in concert with broad market averages. latest round of weak chinese manufacturing news. so that really rattled everybody thinking that the chinese slowdown, this is theme of many weeks that we'll see a global slowdown. christine lagarde adding to the warning. that markets will suffer ripple effect after chinese slowdown. u.s. manufacturing came out down at the close. that had sellers digging in when they saw u.s. manufacturing fell to the its worst level in two years. not even comment from fed official eric rosengren said not clear that rate hike conditions
have been met didn't give anybody any confidence. with that, gerri, david, back to you. david: thank you. you mentioned the russell 2000, that was a very critical technical point. it went below what is called the death cross. that is spooking investors in the final hour of trade. gerri: death cross, oh. adam, you have some of the winners and losers. what is on your list. >> start with some winners. let's look at some green. companies everybody knows, among them the airlines. delta barely making it into the up list but they made it. american airlines, cablevision, who cares about cord cutting, right? cablevision up half a percent. american airlines, delta. come on, delta, land in the green. look at big losers on the different indexes. netflix was down very big today. just very disappointing, almost 9% at one point. dollar tree, they are facing competition from walmart. walmart announcing today that they were going to cut back on employee hours to become more
efficient, save money essentially. that puts pressure on dollar tree. they compete in the same space. no need to explain that one. oil down, exxon down. apple gets big announcement next week. jo ling kent will be in san francisco, whatever they announce, iphone 6s, apple tv. apple still down. general electric they were one of the big losers today on the dow. back to you guys. gerri: well, the bleeding continues. adam, thank you for that report. david: oil as we mentioned not immune to today's steep selloff after posting best three-day gain in a quarter century, crude going opposite direction, down 8%, wiping out the gains from yesterday. larry shover is at the cme. larry, what killed the three-day rally? some people said it would go up to 60 again. now looks like it is going back to the 30s. >> who knows. oil is following signals from
the stock market. has nothing to do with the fundamentals, maybe just a little bit. you brought up a good point, look at huge spike on news from russia and opec, very small news. last week between monday and friday it rallies 29%. 37.75 a barrel. up to $49 a barrel and nothing changed. i have to say, very low dispersion. the oil market is following the stock market. it is not following its fundamentals or is it in line with global growth right now. david: is it more likely to go back up to 50 or down back into the 30s? >> well, back in january i thought high 40s. 48 was my call. i still think that is about true. the supply issues are enormous. opec still producing 2 million perils a day over their quota. the u.s. has cut but they can't balance supply. we had surprises from russia, iraq, libya, et cetera. all that in.
demand is strong in the first half, one million barrels a day. it needs to remain 1.2 million barrels a day. i'm not so sure it will. with that said we're in a supply cut. i think high whose is the call for average price of 2015. david: by the way we're looking at energy companies. they were beaten down badly. a lot of these companies borrow a lot of money for future drilling, for their future purposes. i wonder are in any debt crises because of what has been happening? >> you know everything i have heard and everything i read and people i talk to say, no, not right now. cost curves have come down the they have been able to produce a barrel of oil much cheaper. now they're talking about it might be $29 a barrel. but, we do know capital expenditures have been reduced. we won't see that work its way through the system, probably until end of 2016. we have to keep in mind, a lot of regional banks in the southwest, especially texas, so
far, so good. david: larry shover, great stuff. thank you. appreciate it. >> thank you. gerri: a new month, but the same old china. investors hoping last week's volume at this time had passed but clearly we're not out of the woods yet. bring in scott wren, equity strategist at wells fargo. gary kaltbaum, kaltbaum capital management also a fox news contributor. i will talk to you first, gary. we're turning page on calendar but not on market action. we were expecting something different today. i'm not sure why. you however, told your investors, your clients we ain't out of the woods yet, beware. what did you see that others didn't and what is behind all this volatility? >> well, we think that the bear market, that started 13 months ago with commodities. then average stock and faming and district drives. transports in march. semiconductors in may. advance-decline started to do get crushed. all that happened here was major indices caught up.
what you have very simply right now it is a worldwide bear market which makes it that much worse. if it was just a couple of countries, okay, but now it is everywhere. that tells me we're in a bear market territory. all rallies should be sold. there is more to go. we can sit here to say it is china, this, that and other thing, i'm a big believer, it doesn't look in the rear view mirror. it looks what headlights are seeing and i think you see a lot of recessions going forward. gerri: let's get gary or scott, pardon me. gary says this is bar market we're already there, do you agree? what will september bring? september is hoist toreally bad month for stock indexes, will we see more losses? >> i pretty much totally disagree. i would say that over the next six weeks we're going to see a lot of volatility. no way you could have this dramatic fall in short period of time and then bounce right back. making a bottom is evolutionary
process. we're in that. we're going to see three and 400 point days multiple times in coming weeks. so people need to get used to it, up and down but i will say this. if you look at the data, and we project the data, we're totally looking ahead, we see better things here in the u.s. we see higher growth, percent 1/2, maybe, a touch more in the eurozone. japan doing better. look at some data out of the u.s. ism manufacturing today was lower than expected but you look at that services number in july, it was over 6. so, there's a number of good things that tell us and numbers we're projecting that say, hey, things are moving modestly in the right direction. gerri: go ahead, gary. >> scott, if things are so great why is the market doing this? i'm a big believer is market is great forecaster of down the road. we saw it in '07 when the banks topped out year in advance. you know what happened then the i'm not saying the same thing is going to happen.
i think the market is pretty smart right here. i do not think sellers are done and certainly buyers are still very weak here. gerri: scott, your response. >> i would totally argue we're not saying things are great. that they're good and they will move ahead modestly. i think what happened here you have combination of a lot of uncertainty over chinese growth. our international team has it pegged at 6.8. we think that is where it is going to come in at. we have some conviction. the slow down, china is controlling a slowdown. that is what they want. it is not going to be a hard landing at least in our opinion. while you're seeing some other improvement in terms of economic activity and ultimately earnings in more developed international countries. so i think valuations are not high. gerri: individual investors are not certain right now. they're calling in to mutual fund organizations at record numbers. fidelity told me they had 85,000 people call in the last week. that is a record. they're seeing more and more
people pick up the phone who are uncertain. how long does this selling continue, gary kaltbaum? >> well, i'll give you the short-term good news. i think last monday's lows which are an abomination the way it was handled, i think they probably hold for now. i think, as scott said i think we can rally up 400, down 300. i happen to think we'll break those lows in the next four to eight weeks and have another leg down. and probably a third leg down before this is over. i just don't think you have a big gigantic top like this and it ends after a week or two. i think there is more pain to come unfortunately. gerri: more pain to come, scott, santa claus rally? where are we going? >> i think s&p will be between 2150 and 2250 at end of this year. >> god bless you. >> we started big rally middle of october last year and it was approximately the same. so i think that's where we're going to be. we'll end this year at new highs.
we'll make new record highs in 2016. we want our clients in here buying. david: guys -- >> fingers crossed. david: maybe you don't have to cross your fingers after you listen to our wise panel. stay with us. gary and scott will be here. today's selloff is not just here at home. there is a bloodbath in europe as well with britain's footsie down 3%. france's cac down more than 2%. asian markets closing deep in the red with the nikkei plunging nearly 4%. hong kong's hang seng falling more than 2%. shine's shanghai composite tumbling 1.3% after this dismal chinese data. we have danny and john, managing director at point view wealth management. darius, first to you, everybody is focused on china. i have got news today about canada. canada just had two quarters in a down mode.
to some people that means canada, which is even bigger trading partner with the united states than china is, is now in recession. gary's the one who used that word, that recessions are going to continue. you think of australia, which also relies heavily on sales to china. that may be in recession as well. does that concern you? will that affect the markets going forward? >> certainly is already affecting markets but when you think about gary said markets able to discount future fundamental, the big problem for market fundamentals for u.s. growth haven't been revised down. companies that sell commodities to china, things of that nature are experiencing problems. russia, canada, and australia to join them. the problem expectations for u.s. and eurozone growth are way out in la-la land as scott pointed out. david: even now? >> as scott pointed out. things are great here but there is huge difference between how the sell side and buy side moves markets and fundamentals. going from great to good is bad.
that's why markets go down. david: danny, for so long, felt like market past couple years was so far ahead where our economy was let alone the world economy, it was way far ahead of where the economy was. now i wonder if it goes too far in the other direction. >> think about why that happened, right? there is so much money sloshing around in the system because credit has been cheap. it has been cheap since 2008. that is how markets made it. that shout fed made it. it is continuing to do that. there is still a ton of money sloshing around in these markets. to gary's point and everyone else who says this is horrible market pull out, pull out i totally disagree. this is a sale. market is on sale. where else will you get a 7% yield in a-rated company in energy and see potential upside in 10 to 15 years. david: john, depends on your time frame of course. if your time frame 10 years definitely there are sales everywhere in the market. if your time frame is shorter, maybe there is more down time to
come as gary said? >> yeah. i totally agree with that. in this industry you can get in a lot of trouble for guarantying things, one thing i will guarranty over short term a lot of volatility. if you're trader break out pepto bismol and you will have high of the highs and low of the lows next couple weeks. if you're a long-term investor there are a lot of great business on sale with great fundamentals. david: like? >> media stocks, that have nothing to do with china or nothing to do with the federal reserve. a company like viacom or disney is really attractive at these levels. david: on the other hand, gary, if this is economics driven market, recession outside of united states and maybe some of that creeping inside of the united states, perhaps now is not the time to go in? look, i just don't think so. david, i told you something last week that i stand fast on. and that is asset prices have been a big help to economies around the globe. that is the bubbling up of asset prices because of central banks
and their maniacal ways. asset prices are now coming down. i think that will help along a drop in economic growth around the globe. i think market is forecasting a big slowdown or it is going to cause one. either way it is not good news. david: when is it over though, gary? without arguing with you for the moment, when do you think this downturn is over? >> if we just topped in the last couple weeks in major indices, there is usually three legs down. usually takes six to nine months. i think you're patient. let me tell you the bigger worry, there is so much margin and leverage in the system, that is what causes real dislocation. i'm hoping it will be different this time. remember what happened in '08, that happened because of ridiculous leverage and margin in the system and same now or even more. david: scott, we've been hearing about concerns for leverage in the market. that people were borrowing too much in order to get in and now they're stuck. >> david, there is no doubt,
when you have downside like we have, quick a downside like we have, there will be people levered up that have to bail out. that is definitely a factor. and believe me, in my currency trading days i hinged a lot on technicals. so we clearly broke some technical levels as well. but i think from a fundamental standpoint, people are overestimating slowdown in china. i think they're underestimating what might happen in europe. and i think they're understilting, we have 2.8% number here in the states for this year, gdpwise. i think that is very accurate. i think we'll see decent growth rest of the year. come on, valuations, i mean, valuations at the very top of this market were barely ahead of the 30-year median. valuations were not stretched. david: get a chance to get in, just a second. i want to bring in my panel. dare russ, where do you stand on this? >> you know where i stand on this we've been standing same all year.
economic growth in u.s. is past peak from range perspective. the possibility of recession in 2016 very high. david: above 50%. >> probably around 50% based on variety of indicators we look at. you layer on federal reserve not adding liquidity to the system and threaten to take it away. we agree with fairy. they take six to nine months to play out, we know how afraid they are of how the financial markets react to their decisions. they claim not. we know it is true. people inside of the fed tell us that. you think with canada going into recession and based on concerns about overvaluation of the dollar that there is no fed rate hike this year? >> we certainly don't think there will be a fed rate hike in september. october remains to be seen. if we're talking about 25 point rate hike and we're so concerned about what the stock market will
dove after that after not having any kind of a hike since 2008 i think we're going wrong direction. i would like to see more growth. david: if there is no rate hike, john, what about recession happening in canada, probably will be happening in australia, may happen in china, what happens if that spills over here? what does the fed do? they have nothing to fight it with, correct? >> if there is global recession that affect u.s. economy there will definitely not a rate hike. u.s. economy will slow and force the fed into form of quantitative easing which would help stocks in the long run which would perpetuate stock market growing higher. i agree with danny. 25 basis-point move on fed is irrelevant. the rate of change from that. as long as fed follows policy of going low and slow, coming into 2016 presidential election, probably assume that will happen, then i think markets can handle that. when the environment inflation is low, interest rates are low, i agree with scott, pe valuations are --
david: i want to hear, one good word from gary. gary we do have election coming in up 2016. i know that is far away from where we are, presumably more economic policies will be business-friendly than the ones in place now, aren't you optimistic long-term? >> first off the mets are six 1/2 games in first place. david: i knew you would get that in. >> got to start with that. look, that's a long way away. and to this day there -- david: markets forecast, as you correctly said look forward. aren't they looked forward to that? >> we do not know who is going to come in. hopefully they will be more market and business-friendly. i have to get in one thing about china. david: very quickly. >> can we really trust a country arresting journalists because they're talking about markets or somebody who is selling? it is insane over there, the answer is, no, we can't. >> thank you. david: thank you, guys. appreciate it. >> we have breaking news. good news in fact.
h&r block, the stock soaring, get this nearly 8% on better than expected first-quarter earnings and a 1.5 billion share repurchase. for first quarter h&r block lost 35 cents a share. that is less than the 40 cents expected. so some good news there in a market that desperately needs it. more on today's massive selloff on wall street. the dow ending down over 460 points. let's go back to the stock exchange now and connell mcshane. hey, connell, you've been talking to traders, steven guilfoyle. tell us what you have got. >> guilfoyle has been talking to me all afternoon with key information. you have been talking about the levels on s&p 500. it will sound wonky and getting into the numbers because that's what it is but important because you test levels. when i got down hire this afternoon, s&p, look at 1926. why is that? that was important, right? >> that was our technical level, 40 points loyer at the time. when it hit it bounced off and
broke. >> then it broke through. >> right. >> we got into final hour, everybody watching me, remember me saying this talking to lori rothman on air, 1907. we really have to hold it. but we did. >> i didn't want to head for the 1800s where we were going if 1927 didn't hold. we headed lower and thankfully held that level and buy orders came in at the end of the day. >> so they come in at the end of the day. there was a lot of selling. almost all selling before that. what it tells us what we're dealing with heading into tomorrow, what people have on their mines? >> russell 2000, which has been outperforming pretty much for a few days, stopped outperforming. caught up to other indices. people making sales across the board. >> right. >> you have to look at the safe havens which didn't act that safe. >> that's weird. >> that's weird. treasurys were not that strong. you have to wonder who is making the a sale? are chinese making sale? treasurys would have been stronger.
>> or people are holding out as we talked about earlier, holding money in cash. what do they do with it? >> is money under the bed? >> i guess. maybe. it may be, right. maybe that is the mind-set now. >> maybe we'll find out tomorrow where the money is. >> they have the cash and look at market and say, well, it wasn't a disaster into the close to your earlier point. it was down overall. people pick up whatever they pick up. or ipad. nobody picks up the paper, market got killed but didn't sell aggressively last 10 or 15 minutes. maybe they go to work. >> majority of the selling was first five minutes. >> right. >> we went sideways most of the day. >> we did. little bit middle of the day. it picked up. looked like it would get ugly and never got to that -- i feel like everything is relative. it didn't get that bad. it was bad but interesting the way it closed. >> but we weren't volatile all day. >> steven, thanks. very helpful. very good points all of them. gerri: connell, can i ask a question to steven? >> he doesn't have what we call
ifb. what normal people call earpiece. i will have to be relayer of your information. like a translation, steve. here we go. gerri: what i want is the open for tomorrow? what will it look like tomorrow? so we didn't have massive selling coming into the close. what does it mean for the open tomorrow morning? >> she is curious about the open tomorrow morning the fact we didn't see massive selling. what do you think the open will look like? if you had to guess. >> tell gerri i'm curious about the open. making money is what i want to do. gerri: confounding markets. >> that's right. that's it for us. gerri: connell, steven, thanks very much for that. appreciate your time. david: everybody wants to know what will be happening in the markets and oil market. a snapback to reality for energy traders as oil dives ending the day down 7%, over 8%, almost 9% after-hours. this after climbing more than 20% past three days. the steepest run h up since
2009. big move down. joe petrowski the cofounder of mercantile partners and former gulf oil ceo. great to see you again. a lot of what happened yesterday with rise in price of oil had to do with rumor saudi arabia thinking twice whether they cut back on production. today the rumor was reversed. the fact they will not change their habits at all. could saudis stop what is going on with oil right now by cutting back in their production? >> saudis are not in control of the oil market. the u.s. is in control of the oil market. oil prices are going to stay between $3040 which i think great news and u.s. economy and world economy including china. china is a heavy energy user and they're now using our shale technology and in their offshore finds. so low energy prices for china will actually help them, in their recession. david: joe, think putting a fine
point on what you just said. the saudis, in fact all of opec have lost their ability to price oil, is that what you're saying? >> absolutely. david: wow. >> the u.s. is marginal producer. basically our technology and our shale capabilities have made entire world saudi arabia. all the dinosaurs did not go to the middle east to die. there is oil everywhere. it is a matter of technology and frankly, we have done a great job in this country of becoming the low-cost producer. and we are the low-cost producer. david: joe, today we got word canada is in official recession. they had two down quarters. a lot of that has to do with price of oil going down. they rely so much on oil production for their currency and balance of trade. we do now as well. the downward produces affect our oil production. could they kill off the shale
industry? >> no, they don't. the shale people -- rig count is down and production is up. that tells you how efficient the industry has become. even integrated refiners, really surprised that the integrated oil companies are as low as they should be. production is tough but refining is having a great year right now. gasoline crack margins are at fairly much a way above the mean for refinings. if you're a downstream distributor, it's the best of times. david: wow, that is terrific. that is -- a lot of people would think, gee with gas prices going down these guys are getting hurt. you say it is exact opposite? >> they work on volume and moving product from point a to point b. so the pipeline companies, the distribution companies, i think are going to have great earnings going forward. david: so even if we see gasoline going below $2 a gallon, the distributors of gas
will do great? >> well, i think, the distributors will do great. retailers will actually do better because as prices go down, they make more money. we made more money at gulf with low prices than high prices because people drive more. they spend money inside of convenience -- traditionally gasoline and convenience go together. the cost of business, holding inventory goes down. low prices are even good for retailers and distributors f you're a producer and you're not integrated you're having problems. but if you're australia or canada and production is key to your income, then you're having problems but china, and the u.s., low energy prices, i think are hugely bullish for equities, hugely bullish. david: this is great news, this is great news for the united states because we enat that great all these aspects for production. final question, joe, i will ask,
will we go with gasoline below $2? i saw a gasoline station in new jersey selling gas at $2.05. i thought that was anomaly but could that become regular for most of the country? >> national average of gasoline by end of the year will be around $2. i don't think below 2 will be sustainable because one of the faults with this country, we still have too few refineries. we closed too many over last 10 or 15 years. we're mothballing a lot of older refineries rather than putting new capital. we rely too much on rail transport and u.s. flag vessels to move product which adds about 35 cents to the price of gasoline. but as we debottleneck and build more pipelines, and there are pipeline projects on the books, the xl is not only one although it gets the most publicity.
but as we debottleneck the transportation system, and we don't have major refinery props, you will sigh gasoline probably national average in $1.90 to 2.10 region. david: joe, not only optimistic but very informative. we appreciate you coming on. gerri? >> my pleasure. gerri: all dinosaurs didn't go to the middle east to die, right? here are other stories we're following. a big boost for ford with sales up over 5% for the month while fiat chrysler came in under 2%. sales of general motors fell less than 1%. there will be fewer 24-hour wal-marts. retail giant cutting hours at 300 locations, closing them for five to six hours during the graveyard shifts in the middle of the night. yahoo! ceo marisa mayer announcing she is pregnant with identical twins.
is likely due in december. mayer won't go on maternitity leave as long as she workses to turn yahoo!'s struggling ad business around wow. can getting mcmuffin anytime you want. mcdonald's making a big change, offering all day breakfast, all day. starting october. >> late night people like to have late night breakfast at end of partying. not that i'm one of them. gerri: for lunch or dinner. david: joe petrowski, fascinating stuff on gasoline. gerri: very interesting. david: we forget people who sell gas work on volume. we think it is just cost. but it is also volume. stocks, main story of the day, the down ride on wall street. lori rothman was on floor of new york stock exchange for every move. it was those last moves lori, that seemed to give us a little bit of hope as far as tomorrow's opening. >> that's right. retrace last hour of trading, david. saw dow jones industrial average dip below 16,000 but only for a
hot second. recouping but closing down 469 points as you said. hoping reaction from china data before the bell was overdone. key analysts pointing out it wasn't a surprise, that manufacturing data out of china. came in pretty much as expected. since everybody is so sensitive, investors everybody from main street to wall street, so, so sensitive. so jittery about the chinese economic slow down which frankly isn't a surprise, that tomorrow investors will look at this huge selloff today and comb back into stocks. we saw a classic flight to quality. hitting gold, treasurys. the dollar which can sometimes be defensive play but that dropped off because of weaker u.s. economic data, david. david: lori, thank you very much. don't miss more coverage and analysis of today's market selloff with lou dobbs. tonight it starts at 7:00 p.m.
eastern and we go all the way through to 9:00 p.m. two hour edition of "lou dobbs tonight" this very night. gerri? gerri: with all of this market volatility, how do you keep your 401(k) from plunging along with the markets? back with us, gary kaltbaum, darius dale and joining us dan shaffer, ceo of shaffer asset management. i will start with you, dan. is this what we expect for all of september here, markets continue to sell off? >> yes. based on close selling august 31st, we're looking for the cycle low to occur in september. maybe a bounce up from october 1st. from there i can't tell you. i think are there is a lot more room to go. i'm looking for 13,000 on the dow. it will continue. it didn't close on the low which is what i thought. gerri: darius, i mentioned at top of the show, we have record numbers of fido customers,
fidelity customers, buying mutual funds, calling in to get answer what is is going on with their 401(k)s, their savings. what should they think about the rest of the year, balance of the year? what is going to happen to the markets? >> i'll tell you this -- gerri: darius, go ahead. gary, get you in a second. >> don't call guy plug you into stocks when your portfolio is down. that is step one. step two, analyze expectations for forward growth, inflation and policy, and decide whether you want to buy equity market. sell in may and go away. we put that spot on in early july. you know what we think. you can't call fidelity, ask permanent ma equity bull to tell you -- gerri: i'm not sure fido will have to sell you market. have stocks and bond funds. i'm not sure they have a dog in
that fight. gary, fact i found fascinating, we have ven times s&p 500 in august -- 11 times, declined 80% in subsequent september markets. that doesn't bode well for us, does it? chances are we'll have another negative september. september typically very bad month for stocks. i know you've been pretty negative through the hour. is there any shining beacon, any ray of hope for stocks in the balance of the year particularly september? >> i think there is one thing that can possibly help in the near term. is that it was janet yellen decides to go qe4 to print money again. direct correlation. it is serious. there is direct correlation throughout the last few years when they start or even announce printing of money, markets lift off, they get going. i'm worried we're to the point where markets don't care too much what they have to say because we're six years long. just remember, we've been going for six years without a bear. three years without even correction. gerri: that's right.
>> we were way overdo. 401(k) people, if you're thinking 10 years, don't listen to a word i have to say. i think eventually all said and done if we get normally out of washington where they know what the heck they're doing and become pro-business we can become okay again and make money over the next 10 years but right now not good. gerri: gary, market 10 years, stick tight, here on set, everybody said bingo. they like that. thanks for come on the show. great comments. great insights. we appreciate your time. david: great stuff. what a good crew. negative hits keep on coming for high-tech flyers. apple in correction territory. netflix, did you see this getting crushed. the names to know coming next? we're moments away from "deflategate" ruling. find out what tom brady did today. whether roger goodell's job could be on the line. details coming next. ♪ e only difference: that little blue thingy. you see it?
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gerri: sounding off on market ture lens and china and economy. fox business's peter barnes with what gop hopefuls are saying. peter? >> hey, gerry. not one but two republican candidates for president on our air as markets were tanking today. here is what they said about the economy. >> instead of being dependent on china dumping their goods they make in america, we have to make things in america great. no reason why with our workforce, entrepreneurs, our investors, lower energy costs we can make things and outcompete the world, accept government puts too much regulation and tax on our businesses. >> real issue is how do we grow the economy. six of top 10 wealthiest counties in america where they were, around washington, d.c. under people like president obama and hillary clinton, they
think you grow the economy by growing wall street, washington and k street. >> as for republican frontrunner, donald trump, was talking economy today with the head of the u.s. hispanic chamber of commerce at a private meeting in new york. the chamber told him that his immigration proposals like building a wall on mexican border would hurt industry like agriculture, infrastructure and hospitality. spokesman for the chamber said trump appeared open to its concerns. gerri? gerri: peter, thank you for that. growth, growth. i like that message. david: with markets struggling and economies going bust, is donald trump obscuring the republicans strongest talking point, that liberal democrat economic policies have failed? bill o'reilly spoke to this point last night. take a look. >> trump's style has captivated millions of americans and his campaign has been very successful thus far, so
successful it has almost obliterated fact that the democratic president and party in general have failed to improve america. david: so what does our panel think? julie roginsky, former political advisor to democratic senator frank lautenberg. byron york, "washington examiner" and gary kaltbaum is from kaltbaum capital management. all fox news contributors i'm happy to say. byron, what do you think, does trump outshine message about liberal economic policies? >> so far we heard most about his immigration message which is only thing he publish ad position paper on, but, he says, in the next couple weeks he is going to come out with an economic plan. is going to talk about taxes. has made noise about raising taxes on the super wealthy at least. and what kind of growth message is contained in that? i think it will help set the debate for the next month or so inside of the republican field.
david: gary, we're inside after economic turndown and or a market turndown and world economic turndown in china, we mentioned recession in canada, perhaps coming recession in australia, god knows what will happen here. should that be message rather than a lot of stuff trump is shining about? >> well, it better be message going forward because there are simple problems out there. debt, deficits and nobody talking about them. 75,000 pages of regulations. 75,000 pages of tax code. if we don't get our hands around that eventually, it is all going to break up, all going to blow up. not to mention entitlements. somebody better get on this. david: yes. >> i'm hoping, donald trump is really big noise right now. i hope he comes out with a complete, pro-growth, pro-business, lower tax thought process or i don't know who will. david: i'm just wondering how bad things have to get, julie, before the image of trump, which is a huge image, the name itself
grabs your attention, how bad things have to get here before we switch from the image of trump to the economic realities that we should be talking about? >> i feel like i'm living in bizarro world, because republican frontrunner donald trump endorsed endorse ad few months ago. david: hold on a second. he endorsed one of those policies. he is for a flat tax which actually -- >> that is not what he is for. david: he said he was for it. that is the problem, julie. he said so many different things. are we going to force, is he going to be forced by economic realities here to get specific about what he would do? >> he did get specific. he said he wanted to raise taxes what republicans generally turned job creators and people in democratic party people are entitled. david: we have to be specific. >> that is very relevant. >> i can't allow you to go on with that. not exactly true. byron he was talking about one form of taxation which deals with one group of investors, those are the big hedge funds guys.
and it's a very obscure economic, just talking about. >> not obscure. david: it is obscure. only .1 of 1% of americans pay that will he be forced to deal with economic realities most of us deal with? >> here is the thing. if you are a believer in republican economic orthodoxy across the board you will be unhappy with some of the things he does. he does say he wants to reduce taxes on middle class. i feel certain he will come out against overregulation as all of other republican candidates have done. on the other hand we all know what he said about companies that take factories to mexico and imposing tariffs on their products. so it is going, from a republican orthodoxy economic point of view it is going to be a mixed bag from donald trump. david: gary, what the world gets in economic downturn everybody is always pointing fingers. nobody likes to point to themselves. their fault, their fault. >> always.
david: donald trump pointing to mexicans or somebody pointing to chinese that means we get into currency wars and trade wars and all kind of bad stuff, right? >> i have to tell you i wrote about the currency problem on monday. it is really quiet right now. but that baby can bubble up. that is a huge effect on i'm ports and exports around the globe. look, for donald trump, most important thing he has to do because he is resonating, get specific, always done greatness in the country and potential unlike others. he has to talk about what people can do to make this country great and less government. we have doubled government spending since last year of bill clinton into that inefficient, ineffective blob out of washington, d.c. and that must change or else or the potential of this economy will be 100%. david: he is great for rhetoric, big picture rhetoric. julie, we haven't seen specifics coming out of hillary clinton either? >> hillary clinton, unlike donald trump has record to point
to in senate on economic issues. problem for donald trump, stuff he is talking about the is stuff barack obama talked about. talked about raising taxes on hedge fund and private equity back in may. donald trump talked about that last week. talking about protectionism and trade wars. that is completely anathema and republican base. republican party has to reconcile against -- david: remember who started smoot-hawley trade wars. that was actually republican congress that did that. >> i'm not republican congress did that. david: you should know your history. you should know your history. >> i know it, i don't remember it personally. david: that was one of the things that caused the great depression according to most historians. >> donald trump supports that. david: that was republican issue. we have to be careful on both ends ends. julie, byron, gary. thanks. brutal day on wall street. dow suffering the third biggest point drop for the year. tech stocks, and what you need
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gerri: big tech movers getting rushed in trading. next flicks shares down 8% after reports that apple launching its own streaming media service. apple not unscathed being back in correction territory. cheryl casone in for deirdre bolton joins us now. cheryl. >> gerri, this report from variety about apple potentially getting into streaming business. maybe not a surprise for viewers to make their own original content to compete with netflix. netflix feeling pinch from that.
there is broader story, apple goes, it could take them three, four years, to get quote-unquote divisions they're talking about creating to create all of that content up and running. my opinion, gerri, just my opinion, you're apple. got a lot of cash, go buy a studio, call it a day make something better than house of cards was in season3. see you in a few minutes on "risk & reward." gerri: excellent, cheryl. see you at top of the hour. >> you bet. david: a few stories on our radar a second suspect arrested in connection with the deadly bank bock bombing. the man was arrested in thailand near the border as he tried to cross over i will really according to police there. some lucky or even blessed new yorkers will have opportunity to meet pope francis during his trip. he will visit central park prior to the his mass. they are giving away tickets
through the central park processional through a lottery. new york state resident, anyone at all, is eligible. ruling from judge berman on "deflategate" could happen any moment with no settlement reached. tom brady and patriots resumed practice for final preseason game. the judge says there will be decision by end of the week, probably anytime today or tomorrow. gerri. gerri: we're looking forward to that. august wild ride going into september. what can we expect tomorrow after today's stock market stumble? our panel will weigh in. stay with us.we ♪ them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner, brighter future. at boeing, that's what building something better is all about. ♪
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streets but it is starting to get real nasty, gerri. >> brutal. that is what i call it. talk about your 401(k), right? should investors brace for more losses in september? gary and darius are back with us. gary, 401(k)s, basic thing, basic investing. we're so up off the lows after the major selloff. the worst year for regular investors, regular folks, 52-k balance in 2009. in 2015 it was 91,100. making comparisons with end of quarter each and every year. are we just too greedy? we haven't had a bear market in six years? should people lower their expectations here? >> that is my main point. i get into argument with people over it. bear markets do happen. it is normal cost of doing business.
we're in one now and we probably go lower. if you're in 401(k)s and matching, putting in every quarter, whatever, looking out 10, 20, 30 years -- >> but putting in every payday, gary. >> don't listen to a word i have to say. think long term. if you believe in the future of this great country you have to own stocks for long term. i'm saying we're in a bear market and heading to the downside. >> he said something very intelligent in the break, look, gerri, we're off 10% in the highs. darius, tell us more about your point of view here. >> take into account our expectations for economic outlook, the market should be down 10, 20, 30% over here. could happen in six to nine months or one day if the fed decides to hike rates because of economic slowdown. buy when there is blood in the streets. don't buy every permabear strategist telling you markets are cheap. >> dan, what is your best advice for individual investor?
>> my best advice here start raising cash. i think again we're in the early stages of deflationary depression. we saw it with gold prices. saw it with crude oil prices. see governments lost control of the markets. this induced market that you talked about for last six years, matches balance sheet of federal reserve. whether they admit it or not, they're doing same thing chinese are doing and trying to make us as citizens to make us feel good. it's a lie. we need to understand. so in that kind of environment, just like 1930s and other recessions country had, you need to put money away, get ready for opportunities show themselves when things quiet down. >> variety of opinion there. i love it when people have different points of view on the markets, guys. thanks so much, so much for all your advice. it was great stuff. >> buy treasury bonds. >> i love it. david: dan mentioned something. most americans still don't feel good. government is trying to say that you should feel good but most americans don't buy it into.
today wall street doesn't either. oil is down 10%, trading after-hours. 10% for the whole day. so it looks like a bad day for oil. we can't tell you what will happen with stocks but you have to keep it right here for all the latest. that does it for us. "risk & reward" starts right now. cheryl: another large chemical blast ripping through a chinese city, killing one person. posting video saying fire erupted at factory just before midnight. this is the second chemical explosion to rock the red state in just under a month. the last one killing over 150 people. welcome, everybody, to "risk & reward." i'm cheryl casone in for deirdre bolton tonight. another china explosion as china's markets sell off. weak manufacturing report making